GO
Loading...

Pros: Market is All About Breaking or Holding S&P 1263

Friday, 24 Jun 2011 | 2:27 PM ET

On Friday investors again found themselves grappling with a pair of contradictory catalysts; both of which were powerful enough to drive the market.

On the negative side, chatter suggested that Greece’s parliament was starting to balk at additional austerity measures, a requirement for further aid from the EU.

Should Greece default on its debt, investors fear the ripple it could generate in European banks, and then banks around the world, could cause markets to completely freeze up.

But on the positive side, the latest economic data showed new orders for long-lasting U.S. manufactured products, known as durable goods, increased 1.9 percent in May after dropping 2.7 percent in April as bookings for transportation equipment rebounded strongly.

Considered a leading indicator, the data suggests underlying strength in the economy.

So -- with strong headwinds and tailwinds blowing down Wall Street investors remain squarely focussed on the technical action in the S&P, which once again tested a key level.

What should you be watching and how should you position?

Instant Insights with the Fast Money traders

Steve Grasso explains that 1263 – the 200-day moving average – is what traders on the floor are watching, very closely.

”We bounced off of that level on June 16th and then again on June 22nd” he says. ‘If we break below 1263 we could head all the way down to the 50-week moving average of 1235. However if we hold, the sentiment should become incrementally bullish.”

It seems Grasso’s bias is to the upside. He also reminds that July is historically a better month than June. If 1263 holds, he suggests nibbling at industrials.

Word On the Street Now
The Fast Money traders weigh in on trades to make today.

Trader Pete Najarian is hoping that 1270 will emerge as support however, looking at the elevated levels in the Vix he concedes that the market is nervous. With so many catalysts hovering, he says if you do go long, also buy yourself protection.

Trader Stephen Weiss is far more cautious. He compares weakness in industrials, materials and technology to a civil war battle in which one line of soldiers gets shot down, then another, then another. He doesn’t see any sector emerging as leadership – and without leadership he doesn’t see how the market can advance.

If you’re looking to get into the market trader Patty Edwards suggests going to safety stocks with dividend yield and collecting the yield until the market evens out a little more.

----------

MONEY IN MOTION CURRENCY TRADING

Fears about the Greek austerity vote weighed on the euro Friday. How should you play the swings?

Find out from Rebecca Patterson of JPMorgan Asset Management. Watch the video now!

Euro Trade Before Greece Deadline
A currency trade on the Greek austerity vote, with Rebecca Patterson, JPMorgan Private Bank. Also, the Fast Money traders with stocks that pop.





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On June 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss is Short (X); Weiss is Short (FWLT); Weiss is Short (FLR); Weiss owns (QCOM); Weiss owns (HGSI); Weiss owns (PZN); Weiss owns (JPM); Weiss owns (EMC); Weiss owns (UUP); Weiss owns (COP); Weiss owns (MDRX); Weiss owns (VZ); Weiss owns (AET); Weiss owns (HK); Weiss owns (TWM); Weiss owns (NS); Weiss owns (HAIN); Weiss owns (ETP); Weiss owns (SDS); Weiss owns (WFT); Pete Najarian is long (AAPL); Pete Najarian is long (C); Pete Najarian is long (MS); Pete Najarian is long (MOS); Pete Najarian is long (BEXP); Pete Najarian is long (TCK); Pete Najarian is long (MRVL); Grasso Owns (AKS); Grasso Owns (AMD); Grasso Owns (ASTM); Grasso Owns (BA); Grasso Owns (BAC); Grasso Owns (C); Grasso Owns (D); Grasso Owns (HOV); Grasso Owns (JPM); Grasso Owns (LIT); Grasso Owns (LPX); Grasso Owns (MHY); Grasso Owns (NDAQ); Grasso Owns (PFE); Grasso Owns (PRST)

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (SDS) For Clients
Edwards Owns (BMY) For Clients
Edwards Owns (RIG) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (ORCL) For Clients
Edwards Owns (TGT) For Clients
Edwards is long S&P500 For Clients
Edwards is long Nasdaq 100 For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (SLV) For Clients
Edwards is long (SDS) For Clients
Edwards is owns (XLK)

For Steve Grasso
Stuart Frankel & Its Partners Own (ABX)
Stuart Frankel & Its Partners Own (CSCO)
Stuart Frankel & Its Partners Own (CUBA)
Stuart Frankel & Its Partners Own (GERN)
Stuart Frankel & Its Partners Own (HES)
Stuart Frankel & Its Partners Own (HPQ)
Stuart Frankel & Its Partners Own (HSPO)
Stuart Frankel & Its Partners Own (MU)
Stuart Frankel & Its Partners Own (MSFT)
Stuart Frankel & Its Partners Own (NYX)
Stuart Frankel & Its Partners Own (PFE)
Stuart Frankel & Its Partners Own (PRST)
Stuart Frankel & Its Partners Own (RDC)
Stuart Frankel & Its Partners Own (SDS)
Stuart Frankel & Its Partners Own (XRX)
Stuart Frankel & Its Partners Are Short (QQQQ)
Stuart Frankel & Its Partners Are Short (AAPL)

For Rebecca Patterson
**No Disclosures

For Daniel Fisher
Daniel Fisher is short Natural Gas




CNBC.com with wires.

  Price   Change %Change
VIX
---
SPDR MAT SEL
---
SPDR IND SEL
---
SPDR TEC SEL
---

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.